Platinum loses some of its shine in 2007

by eyetee | May 5, 2008 12:00 am

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A precious metals consultancy says zero tolerance to mine fatalities, a shortage of skilled labour, biennial wage talks, and employee safety are all to blame for a sharp decline in the production of platinum in 2007.

In its Platinum & Palladium Survey 2008, GFMS says output from South Africa—which produces 75 per cent of the world’s platinum—reversed six years of uninterrupted growth.

Coupled with a strong demand for platinum, particularly as an autocatalyst, production fell to just over 200,000 ounces.

The outlook for 2008 doesn’t look much better following a national energy crisis earlier this year that pulled back production.

A nationwide five-day stoppage of all underground mining operations ensued after Eskon, the state-owned electricity generator, said it was unable to guarantee power supplies. Although 90 per cent of power (and in some cases, 95 per cent) was restored and mining resumed, GFMS says there “is considerable uncertainty over the effects of this on production levels for 2008, with expansion projects also in play.”

The group says these factors may lead to even more disappointing results over 2007, with production failing to match last year’s output. However, GFMS says this will not necessarily result in a larger deficit since jewellery demand will likely decline while scrapping of old jewellery is expected to increase.

 

Source URL: https://www.jewellerybusiness.com/news/platinum-loses-some-of-its-shine-in-2007/

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